InvestigateTV – More than 168 million Americans are expected to file taxes this season, according to the Internal Revenue Service (IRS).
This year, the deadline to file is April 18. Michael Joyce, president of the financial firm Agili, said you can still take action that could lead to a lower tax bill.
Joyce recommended contributing additional funds to your IRA or ROTH IRA accounts. Any contributions made before the deadline would count for your 2022 return and could lead to a tax break.
If you’ve already started the paperwork and notice you are getting a large refund, Joyce said that could be a sign you might need to adjust how much money you are withholding from your paycheck.
“If you’re getting too big of a refund that means that you’re giving the government in essence a tax-free loan,” Joyce said.
Joyce recommended lowering your withholdings so you receive a little more money in each paycheck instead of having to wait a year for your large return.
The IRS has tips to avoid common mistakes in the preparation and filing process:
- Typos or misspelled names: your name should be entered exactly as it appears on your Social Security card.
- Mistakes in the math: double check your calculations before submitting or use a preparation software that checks it for you automatically.
- Incorrect filing status: make sure you pick the correct status. This IRS form helps you make the right choice.
Additional advice from the IRS can be found here.
There are also free tools from the IRS that include free filing software for those eligible, free help for the elderly, a refund tracker and other help.
Copyright 2023 Gray Media Group, Inc. All rights reserved.